Applying Benford’s law to detect earnings management

Abstract

– This paper analyzes the role of Benford’s law in the detection of earnings management in Poland. Previous research that uses Benford’s law does not split the sample into a fraud and a control group; however, this method is used in logistic regression and data mining analysis.

Keywords

• earnings management
• digital analysis
• polish companies.
• c46
• m40
• m42.